Before Investing any IPO Instead of focusing on hype and Demand try to understand company positives and negatives, so let us discuss about positives and negatives.
Positives:
The Main positive point for IPO is their agents, Most of the Insurance companies do their sales through banks or branches but LIC do most of sales through agents.
Most of the customer of LIC are spread across all over India, mainly in rural Areas.
It invested in many well reputed Companies
IPO coming with reasonable valuation and there is a discount for Employees and Policy holders
Negatives:
Mostly urban people try to choose private player because private players generating more return the the LIC.
Company not updating it’s product basket as trend changes.
Not able to generated the return as much as Private Holders.
As of now they are offering 3.5% stake only , but as per SEBI they need offload further 25 % through FPO.
As of now in short term we may see demand for IPO but for Long term we need to track the company growth.
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FunTech Team